Kern 27% lift

Press, 29 August 1986, Page 10

Kern 27% lift

Kern Corporation, Ltd, the Australian company recently listed in New Zealand, has posted its 25th consecutive increase in profit with a 27 per cent rise to $20,247 niiilion for the year ended June 30.

The profit was earned on a turnover of $231.2M 47 *pe r cent higher than last year. Tax was 51.280 M ($1.725M in 1984-85) and depreciation 51.157 M ($1.165M). Final dividend is steady at 3c per share (30 per cent), but the full year’s dividend pay-out increased by 60 per cent from $2-417M to $3.885M as a result of the year to year increase in issued capital from 54.834 M to $8.083M. Dividend is payable on October 30. Earnings per 10c share rose from 26.7 c (adjusted for the 1985-86 issues) to 28c. The managing director, Mr Barry Paul, said the company would mark its 30th anniversary with a shareholder entitlement to a partly paid renounceable one-for-four rights issue at 160 c a share, with only 10c on application and the remaining 150 c payable on or before October 1. The 22.3 M new shares will

not rank for dividends until fully paid, and will carry voting rights in proportion to the amount paid up. Mr Paul said a pleasing feature of the results the value of work on hand, which was also at record levels “The value of property development projects currently in progress exceeds S44OM and this is by far the highest recorded at any time in the company’s history," he said. Kern had been approached to participate in the establishment and flotation of a new company to invest in tourism and associated activities. Kern intends to acquire a 20 per cent shareholding in the new company and should the necessary approvals be given, Kern shareholders could be’ given a priority right of participation in the public float Mr Paul said further expansion of Kern’s building supplies group was also proposed by the acquisition of a 25 per cent interest in a new company shortly to be listed on the Stock Exchanges for the purpose of manufacturing pre-stressed concrete products.